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NY Bill Seeks Pandemic-Related Local Employment Tax Credit

By Jaqueline McCool · 2021-01-15 13:32:29 -0500

Under a state Assembly bill, New York would create a tax credit for businesses that employ low-income or at-risk employees in the two years after the conclusion of the state emergency declared as a response to the COVID-19 pandemic.

A.B. 2231, introduced Thursday by Assemblywoman Catalina Cruz, D-Queens, would allow employers of low-income or at-risk employees who were previously unemployed because of the pandemic to claim a monthly credit of $750 for each full-time employee or $350 for each part-time employee for the first six months of employment.

An employer that keeps the employee for six more consecutive months could claim an additional $1,500 credit per full-time employee or $750 per part-time employee. If the employer keeps the employee an additional year, it could claim another $1,500 per full-time employee or $750 per part-time employee.

Eligible employees would need to live within 50 miles of the employer and in a city with a minimum population of 80,000 or a town with a minimum population of 55,000, according to the bill. The bill requires employers to submit a certificate and be approved to participate in the tax credit program.

If enacted, the bill would take effect immediately.

--Editing by Joyce Laskowski.

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